According to new research from Payments UK, a record number of 44 billion payments will be made in the year 2024 which will be due to the increased use of digital payments.
Growth in usage of card, internet and mobile banking services has been seen in abundance recently and 771 million one-off payments were processed in 2014 and is expected to reach 1.94 billion by 2024. Alongside this, 4.2 billion direct debits are predicted to be made in 2024.
These forecasts highlight that over the next decade more payments are expected to come from debit cards and consumers will be less likely to use cash because of contactless technology. “In 2014 debit card payments represented 26% of consumer payment volumes. By 2024 this is projected to rise to 42% of consumer payment volumes – equivalent to an average of 282 debit card payments per person,” Payment UK revealed.
However, cash machines will remain the main method of obtaining cash in the next decade and 2.5 billion withdrawals are set to be made in 2024, “with the value withdrawn predicted to rise from £189 billion in 2014, to a peak of £196 billion in 2019, before falling slightly to £192 billion in 2024.”
Last year, only 1.1% of payments were completed using cheques and is expected to decline to 0.4% by 2024.
The insurance industry will also benefit as private businesses increasingly bypass the public internet and communicate with one another direct, predicts Equinix.
The information and communications technology sector is suffering a triple whammy from slower growth, thin profit margins and fierce competition, claims Atradius.
Merchants are aiming to meet the expectations of increasingly demanding consumers while still maintaining operational efficiency, reports SIX Payment Services.
More than $140,000 worth of bitcoins paid by victims of the May ransomware attack has been withdrawn from digital wallets nearly three months later.